China risks another downgrade if debt bubble not fixed, says Moody's

The ratings agency is likely to attract further criticism from Beijing after doubling down on its view that the economy is headed for trouble

China's structural reforms will not be enough to arrest its rising debt and another credit rating downgrade for the country is possible unless it gets its ballooning borrowing in check, two officials at Moody's ratings agency have said.

Doubling down on comments earlier this week that China's financial strength will be eroded because of huge corporate and household debt, Moody's said the country's "vast reform agenda" would not be enough to prevent borrowing from weighing on economic growth.